Baidu is gradually increasing its business in the first quarter of 2022. Its exploration of different aspects has indicated huge potential for growth in the future.
On May 26, 2022, Baidu (BIDU: NASDAQ) released its unaudited financial report for the first quarter of 2022. Baidu’s total revenue was CNY 28.4 billion, up 1% year-on-year. the other compared to CNY 28.1 billion in the first quarter of 2021. The market expectation for the total revenue was CNY 27.8 billion, which is lower than the actual total revenue earned. In non-GAAP, its net profit was CNY 3.879 billion. Under GAAP, its net loss was CNY 885 million.
Baidu’s core revenue was CNY 21.4 billion, up 4% year-on-year, including online marketing and non-network marketing. Online marketing revenue was CNY 15.7 billion, down 4% year-on-year. It was driven by cloud and other AI companies. Its intelligent cloud revenue grew 45% year-over-year. Its non-network marketing revenue was CNY 5.7 billion, up 35% year-on-year. iQIYI’s revenue was CNY 7.3 billion yuan, down 9% year-on-year. Core R&D expenditure reached CNY5.1 billion, accounting for more than 20% of Baidu’s core revenue for six consecutive quarters.
After the publication of its financial report, Baidu’s share price rose more than 4% that day. Even though COVID-19 might have a huge influence on Baidu’s development in the first quarter of 2022, Baidu was still gradually increasing. Baidu mentioned that they will continue to work on the development of artificial intelligence. As this is a new area that Baidu is entering, Baidu is eager to leave this part as one of its main sources of income.
As Baidu has cooperated with BYD in its e-cars, Baidu will work more closely with BYD on the development of its e-cars and explore a new business area. Its exploration in different other areas has indicated strong potential for future growth and sustaining Baidu’s increased development.